Residential buildings along the coastline in Nuuk, Greenland, on Saturday, May 3, 2025.
Carsten Snejbjerg | Bloomberg | Getty Images
LONDON — European stocks are expected to open lower on Thursday as market nerves linger over U.S. President Donald Trump’s threat to annex Greenland.
The U.K.’s FTSE index is seen opening 0.3% lower, Germany’s DAX and France’s CAC 40 are expected to be slightly below the flatline, and Italy’s FTSE MIB is seen down 0.2%, according to data from IG.
Global markets have been focused on rising geopolitical tensions this week after the U.S.’ deposing last weekend of Venezuelan President Nicolas Maduro, and then threats to seize Greenland.
Wall Street closed lower Wednesday, and defense stocks fell after Trump said he “will not permit” defense companies to issue dividends or stock buybacks until they address his complaints about the industry, including executive pay packages and production issues.
European markets have been on high alert this week following Trump’s threats that the U.S. could use military force to acquire Greenland, a semi-autonomous territory of Denmark.
European defense stocks moved higher on Wednesday, with the Stoxx Europe Aerospace and Defense index adding 3% through the session, learning it its fourth consecutive day of gains.
Regional leaders have pushed back against Trump’s takeover aims, and U.S. Secretary of State Marco Rubio is due to meet Danish officials next week. Rubio has played down the threat of an invasion, saying Trump wanted to “buy” Greenland.
Asia-Pacific markets traded mixed overnight while U.S. stock futures hovered near the flatline.
Investors this week are awaiting the Supreme Court’s opinions on the legality of tariffs imposed by Trump expected on Friday. The ruling could lead to some potential market volatility.
There are no major earnings or data releases due Thursday.
